FBM KLCI - a fresh record high of 1526

Stocks on Bursa Malaysia ended mixed yesterday with persistent buying for heavyweights which pushed the FBM KLCI to a new all-time high level, despite some profit-taking in the local bourse as well as key regional markets. The FBM KLCI which has been on an uptrend since last week ended 6.68 points higher at 1526.53, although it had seen an intra-day all time high of 1526.67 earlier. The historical intraday high record was 1524.69 seen on Jan 14, 2008. Gainers led losers by 447 to 412 while 270 counters were unchanged. Total turnover increased to 1.643 billion shares worth RM2.136 billion from Monday’s 1.52 billion shares worth RM2.252 billion.

The FBM KLCI opened 1.87 points higher at 1521.71 and surged to the morning session high of 1524.03 within the first half-an-hour, profit-taking immediately surfaced which sent the key index to its intra-day low of 1520.03 before lunch break. The afternoon session saw an increased in buying of heavyweights which pushed the key index to its intra-day high of 1526.67 before ending the day off high to close at a new record close of 1526.53.

Chart-wise, the FBM KLCI formed a bullish white candlestick which indicates buyers were dominant throughout the day. With the breaking of the all-time-high level, the FBM KLCI is now in an uncharted territory, and is expected to continue its upward momentum to chart new high. However, a pull-back is expected before the benchmark index heads for its next target level of 1550.

MACD continued to climb higher after making a golden-cross yesterday, indicating the picking up of the positive upward momentum. RSI (14) is at 78.8 and continued to move higher, indicates a very bullish state of the key index, albeit is short term overbought. Stochastic is at 96.4 and continued to climb higher, indicates very strong market strength. Readings from the indicators signalled a very bullish state of the FBM KLCI, and it is expected to continue its bullish up move in the near term.

The underlying uptrend of the FBM KLCI remained very strong with the key index staying above all the short, medium and long term moving averages. After breaching the record high level of 1524-point successfully, the FBM KLCI is expected to test the next target level of 1550 in the near term. Immediate strong resistance is expected at the 1530 level, while the immediate downside support zone is at 1500 to 1516.

Overnight, the Dow fell -60.09 points or -0.53% lower to close at 11,346.75. Today, the FBM KLCI is likely to trade within a range of 1515 to 1533.

This week's expected range: 1492 – 1527
Today’s expected range: 1515 – 1533

Resistance: 1529, 1531, 1533
Support: 1515, 1518, 1522

Stocks to watch: OSK, TA, PMCAP

FBM KLCI - New record high!

Stocks on Bursa Malaysia ended firmer yesterday amid buoyant sentiment for plantation stocks amid a rally in crude palm oil price but profit taking capped further gains. The FBM KLCI gained 8.1 points or 0.54% to close at 1519.84 after opening 5.27 points higher at 1517.01, it had touched an intra-day high of 1522.77, up by 11.03 points. Advancers outnumbered decliners by 592 to 289 while 253 counters were unchanged. Turnover increased to 1.520 billion shares worth RM2.252 billion from last Thursday’s 1.278 billion shares worth RM1.61 billion.

The FBM KLCI opened with an up gap of 5.27 points at 1517.01 and surged to the intra-day high of 1522.77 in the morning. Profit-taking activities set in and pushed the key index to the intra-day low of 1517.01 before last minute buying of selected key heavyweights lift the benchmark index to close at 1519.84, a new record close for the FBM KLCI. Chart-wise, the FBM KLCI formed a possible shooting-star candlestick which indicates heavy selling pressure encountered by the key index. With the bullish sentiments remained intact, the key index is expected to test the record high of 1524.69 anytime this week.

MACD moved higher and made a golden-cross, which is a strong buy signal. The golden-cross also indicates a resumption of the upward momentum. RSI (14) climb higher into the overbought zone, a reading of 76.3 indicates the key index is very bullish. Stochastic is at 93 and has hooked up, indicates very strong underlying market strength. Readings from the indicators signalled a very bullish state of the FBM KLCI, and it is expected to continue its bullish up move in the near term.

The underlying uptrend of the FBM KLCI remained very strong. Immediate strong resistance is expected at the 1524 level, while the immediate downside support zone is at 1500 to 1516. If the key index is able to breach the 1524-point level successfully, it is expected to test the next target level of 1550.

Overnight, the Dow fell -37.24 points or -0.33% lower to close at 11,406.84. Today, the FBM KLCI is likely to trade within a range of 1511 to 1529.

This week's expected range: 1492 – 1527
Today’s expected range: 1511 – 1529

Resistance: 1523, 1526, 1529
Support: 1511, 1514, 1517

Stocks to watch: CEPAT, DAYA, GHLSYS, GUNUNG, IJMPLNT, MASTEEL, TDM

FBM KLCI - inching closer to all time high level

Stocks on Bursa Malaysia ended last week broadly higher. Bursa Malaysia was closed for Deepavali celebration on Friday. The market barometer, FBM KLCI ended last week at 1511.74, or 6.08 points higher from 1505.66 the previous week. It is getting closer to its all time high close of 1516, recorded on Jan 11, 2008. The total weekly turnover decreased to 5.075 billion shares valued at RM6.168 billion from 6.275 billion shares valued at RM8.958 billion the previous week.
The FBM KLCI ended firmer on last Monday with a gain of 4 points to close at 1509.66, led by oil & gas stocks after the strong listing the previous Friday of Petronas subsidiary MHB, and in line with regional markets on the back of China's strong manufacturing growth. The market ended lower on Tuesday on profit-taking amid regional weakness after Australia unexpectedly raised interest rates, with the FBM KLCI down 3.09 points to close at 1506.57. On Wednesday, The FBM KLCI inched up by 1.03 points to close at 1507.6 after trading in a tight range, with most investors switching trading positions to fast moving lower liners and plantation stocks. Stocks extended gains on last Thursday, on Deepavali eve, after news of UEM Land's merger plan with Sunrise, which boosted buying interest in lower liner property stocks.

On the weekly chart, the FBM KLCI formed a spinning-top candlestick which indicates a balanced in the bull’s and bear’s fight with the bull having a slight edge as the key index closed above its weekly opening price, this candle formation also indicates indecision in the market to move forward. Nevertheless, this is the sixth straight week of gain in the benchmark index. On the daily chart, The FBM KLCI too formed a Doji candlestick after opening with an up gap of 4.46 points higher last Thursday; the formation of a Doji indicates the benchmark index was indecisive to move further ahead of a long weekend. Nevertheless, it still made a gain of 4.14 points on a day-on-day basis.

Weekly MACD continued to move higher, however, its weekly histogram is getting shorter, indicating a slow down in the weekly or medium term upward momentum. Daily MACD was turning flat but is still below its signal line, and its daily histogram has turned shorter upward, indicating a state of consolidation. Just a slight gain in the key index will lead to a golden-cross.

Weekly RSI (14) continued to move higher, and is at 80.7, a level which is strongly overbought, and a correction is imminent. Daily RSI (14) at 72.7 continued to climb higher and is still in a bullish state.

Weekly Stochastic is at 97.1 and continued to move higher, indicating a very strong medium term underlying strength of the FBM KLCI. Daily Stochastic at 90.6 has, however, turned flat and has stick to its slow stochastic, reflecting the consolidation.

Technical signals on the weekly chart are indicating a still very strong underlying strength, with the appearance of a spinning-top candlestick and weekly RSI moving into extremely overbought zone, a correction is imminent. Signals from the daily chart are indicating a strong underlying strength with a slow down in the upward momentum, hence, the key index might continue to move sideways with an upward bias.

Having said so, the bullish trend indicators should offset the overbought situation on momentum oscillators for the FBM KLCI which could persist for a while, especially given the firm external market tone as global stocks and commodities rally on optimism the second round of quantitative easing by the US further weakens the dollar and boost growth.
The Dow rose a marginal +9.24 points or +0.08% higher to close at 11,444.08 last Friday. This week, the FBM KLCI may trade within a range of 1492 to 1527, and for today it is likely to trade within a range of 1504 to 1518.

This week's expected range: 1492 – 1527
Today’s expected range: 1504 – 1518

Resistance: 1514, 1516, 1518
Support: 1504, 1506, 1509

FBM KLCI - range-bound consolidation

Stocks on Bursa Malaysia remained in positive territory at the close yesterday, with the benchmark index up 0.07% on persistent buying interest from local institutions in selected lower-liners, plantation and consumer counters. Investors continued to snap up plantation stocks as they were bullish about the earnings of plantation companies following the higher crude palm oil prices. The FBM KLCI rose 1.03 points to close at 1507.60 after opening 0.82 point higher at 1507.39. Gainers led losers by 503 to 280 while 307 counters were unchanged. Turnover increased to 1.325 billion shares worth RM1.436 billion from Tuesday’s 1.200 billion shares worth RM1.609 billion.

The FBM KLCI opened 0.82 of a point higher at 1507.39 and surged to the intra-day high of 1509.65 within the first fifteen minute after opening. Profit-taking activities immediate took over and sent the benchmark index to its intra-day low of 1596.60. The key index traded in the positive territory but in a narrow range throughout the day, which was really a range-bound trading day. Chart-wise, the FBM KLCI formed a Doji candlestick in Harami position which indicates consolidation and indecision of the market in its direction. Hence, the market is expected to continue its consolidation until some clearer signals surface to either push it higher or lower.

MACD continued to slide lower albeit in a slow pace, indicates the continued loss of market momentum, nevertheless, it is still above its signal line which indicates a bull market consolidation. RSI (14) at 70.6 has hooked up marginally, reflecting the marginal gain in the key index. Nonetheless, the RSI reading shows that the key index is still in the bullish zone. Stochastic at 90.5 has turned downward, but is still above its slow stochastic line, reflecting the consolidation but the underlying short term market strength remained strong. Mixed signals from the indicators indicate that the FBM KLCI might continue its range-bound consolidation.

The underlying trend remained up as the key index continues to stay above all its moving averages. Immediate overhead resistance zone remained at 1511 to 1524 while its support zone is at 1500 to 1490. Overnight, the Dow rose +26.41 points or +0.24% higher to close at 11,215.13. Today, the FBM KLCI is likely to trade within a range of 1503 to 1513.

This week's expected range: 1481 – 1524
Today’s expected range: 1503 – 1513

Resistance: 1509, 1511, 1513
Support: 1503, 1504, 1506

FBM KLCI - a healthy profit-taking correction

Stocks on Bursa Malaysia ended lower yesterday, with the key index falling 0.20%, dragged down by losses in heavyweight counters. The benchmark FBM KLCI which has been hovering above the 1,500 psychological level, slipped 3.09 points to close at 1506.57 after opening 0.15 point lower at 1509.51. Decliners outnumbered advancers by 463 to 279 while 320 counters were unchanged. Turnover dropped to 1.200 billion shares worth RM1.609 billion from Monday’s 1.271 billion shares worth RM1.512 billion.

The FBM KLCI opened 0.15 point lower at 1509.51 and continued to slip lower throughout the day. Last minute bargain-hunting of selected key heavyweights helped lift the key index off its intra-day low of 1504.72 to close the day at 1506.57. Chart-wise the key index formed a bearish black candlestick which covered the gap formed on Monday. The price action of the FBM KLCI yesterday also confirmed the reversal signal issued by the spinning-top candlestick formed on Monday. The key index, however, still manage to close above the 5 and 10-day moving average lines.

MACD has hooked downward and continue to remain below its signal line, indicating a resumed of the downward momentum. RSI (14) has retraced from the reading of 73.8 the day before to 70, reflecting the current correction, nevertheless is still in the very bullish zone. Stochastic at 93.8 continued to climb higher but is tapering off. Mixed signals from the indicators indicate that the FBM KLCI might goes into a short term consolidation.

The overall uptrend remained intact as the FBM KLCI continued to stay above all its short, medium and long term moving averages. Immediate overhead resistance zone is at 1511 to 1524 while the downside support zone is at 1500 to 1490.

Overnight, the Dow rose +64.10 points or +0.58% higher to close at 11,188.72. Today, the FBM KLCI is likely to trade within a range of 1499 to 1515.

This week's expected range: 1481 – 1524
Today’s expected range: 1499 – 1515

Resistance: 1509, 1512, 1515
Support: 1499, 1502, 1504

FBM KLCI - stood firmly above 1,500

Stocks on Bursa Malaysia ended mixed in range-bound trading yesterday but the key index increased 0.27%, supported by finance and plantation stocks. The FBM KLCI, which hovered at the 1,500 mark, advanced 4.00 points to close at 1509.66 after opening 5.03 points higher at 1510.69. Decliners outnumbered advancers by 440 to 343 while 317 counters were unchanged. Turnover dropped to 1.271 billion shares worth RM1.512 billion from 1.462 billion shares worth RM2.342 billion last Friday.

The FBM KLCI opened with an up gap of 5.03 points at 1510.69, and traded to the intra-day high of 1511.24 within the first five minutes. Heavy profit-taking activities immediately appeared and sent the key index to its intra-day low of 1506.31. The key index hover in a tight range for most part of the day, and a last minute buying of selected key heavyweights pushed the key index to close higher at 1509.66. Chart-wise, the FBM KLCI formed a black spinning-top candlestick which indicates indecision of the key index to move further, and was faced with heavy selling activities. The key index has now stood firm above the 1,500 psychological resistance level, and will try to challenge its next target levels at 1516 and 1524 soon.

MACD has turned upward, albeit still below its signal line, indicates a pick up in the upward momentum. In fact, its histogram has shown the subtle increase in upward momentum since four days ago. RSI (14) continued to climb higher into the overbought zone, and is at 73.8, indicates the key index is getting more bullish. Stochastic at 92.9 has moved higher into the short term overbought zone, and is expected to continue climbing higher. Signals from the indicators indicate that the FBM KLCI has regained its bullishness after the recent consolidation.

The underlying uptrend remained very strong and intact, as shown by the moving averages that are all pointing northeast. Immediate overhead resistance zone is now at 1511 to 1524, while the immediate downside support zone lies at 1500 to 1490. The overall market is expected to remain buoyant with lower liners continued to be in rotational play.

Overnight, the Dow rose a marginal +6.13 points or +0.06% higher to close at 11,124.62. Today, the FBM KLCI is likely to trade within a range of 1501 to 1516.

This week's expected range: 1481 – 1524
Today’s expected range: 1501 – 1516

Resistance: 1512, 1514, 1516
Support: 1501, 1504, 1506

Stocks to watch: CHUAN, CIHLDG, DIALOG, DNP, K1, SUNRISE, TOMEI, TSH

FBM KLCI - closing above 1,500 at 33-month high

Stocks on Bursa Malaysia ended last week mostly higher, with gains in banking stocks boosting the major indices. The listing of Malaysia Marine and Heavy Engineering Bhd, the rig-building arm of MISC Bhd last Friday, also gave the market a boost. The benchmark FBM KLCI ended last week 15.02 points or 1.01% higher, week-on-week, to 1505.66 from 1490.64 the previous Friday, charting a 33-month high compared to its all-time historical high of 1,524.69 on January 14 2008. Weekly turnover declined to 6.275 billion shares valued at RM8.958 billion from 6.971 billion shares valued at RM8.674 billion the previous week.

The FBM KLCI opened 2.89 points higher last Monday but ended 0.80 of a point to 1491.44 after trading in a narrow range. The key index rebounded on Tuesday to close 5.50 points at 1496.94. On Wednesday, the key index staged a follow through rebound to close 2.17 points higher at 1499.11. Coming to Thursday, the overall market sentiment on Bursa Malaysia remained firm amid range-bound trading activities, and the benchmark index rose a marginal 0.33 point to 1499.44. On Friday, the FBM KLCI continued its rebound to close the week at the intra-week high of 1505.66, charting a 33-month new high.

On the weekly chart, the benchmark FBM KLCI formed a bullish white candlestick without any upper shadow, which indicates the bulls were very much in control. This candlestick also confirmed the reversal signal issued by the Doji formed the previous week. With the bullishness shown, the key index is likely to continue its up move to test the historical highest close level of 1516.22 registered on Jan 11, 2008.

On the daily chart, the FBM KLCI also formed a similar bullish white candlestick without upper shadow on last Friday, signifying the bull is in full control and is likely to continue its surge upward. Immediate overhead resistance lies at 1516, 1521 and 1524, while the immediate support zone is at 1500 to 1490.

Weekly MACD continued to move higher, indicating a strong continuation of the upward momentum. However, the weekly histogram is turning shorter, indicating a slower upward pace. Daily MACD has turned upward but still below its signal-line, indicating a gradual pick up in the upward momentum.

Weekly RSI (14) continued to move higher, and is at 80.05, indicating the medium to long term market strength of the FBM KLCI is very bullish. However, do beware of a possible strong pullback when the key index moves into this very bullish or overbought zone. Daily RSI (14) at 72 is currently entering the short term overbought zone, indicating the key index is turning very bullish for the short term, and may continue its upward momentum to move higher.

Weekly Stochastic is at 94.8, and is above its slow Stochastic, indicates a very strong underlying medium to longer term market strength. Daily Stochastic at 87.9 continued its up move into the overbought zone, indicating the FBM KLCI has move out of its short term consolidation to swing into an up cycle.

The underlying uptrend of the FBM KLCI remained very strong as all its moving averages are pointing northeast. For this coming week, the FBM KLCI is expected to continue moving higher to challenge the historical all-time high levels, while the overall market will remain buoyant with active rotational play on second and third liners.

The Dow rose a marginal +4.54 points or +0.04% higher to close at 11,118.49 last Friday. This week, the FBM KLCI may trade within a range of 1481 to 1524, and for today it is likely to trade within a range of 1492 to 1514.

This week's expected range: 1481 – 1524
Today’s expected range: 1492 – 1514

Resistance: 1508, 1511, 1514
Support: 1492, 1495, 1500